GCADA members with fewer than 100 employees will NOT be required to provide health insurance until 2016 due to the latest delay under the Affordable Care Act, announced yesterday. The average U.S. car dealership had 55 employees in 2012, according to NADA.

The Treasury Department, in regulations outlining the Affordable Care Act, said employers with 50 to 99 full-time workers won’t have to comply with the law’s requirement to provide insurance or pay a fee until 2016. Companies with more workers could avoid some penalties in 2015 if they showed they were offering coverage to at least 70% of full-time workers.

Under the original health law, employers with the equivalent of at least 50 full-time workers had to offer coverage or pay a penalty starting at $2,000 per worker beginning in 2014. Last year, the administration delayed the requirement for the first time, moving it to 2015.

GCADA is currently researching the details of this delay and any future changes to determine the overall impact it may have on our members. As each dealership’s infrastructure varies, we urge you to review your current health insurance program and contact your Association with any questions regarding the Affordable Care Act and strategies to maintain compliance now and in the future. Thank you for your continued support!